The ban has been lifted on publication of the names of the former senior managers at Frutarom suspected of bribing officials in Ukraine and Russia with large sums over a long period.
Ori Yehudai, who was president and CEO of Frutarom, together with company vice presidents Alon Granot and Guy Gill, and Ari Rosenthal, who was responsible for the company's activity in those countries, allegedly bribed officials in Russia and Ukraine and committed additional offenses of false accounting, fraud, and breach of trust.
The Israel Securities Authority stated: "In the course of the investigation, evidence was discovered that strengthens the suspicions of the suspects' involvement in the commission of the offenses described." The court was also informed that more people have been questioned in the investigation, and that further enquiries will be necessary.
The four suspects have been freed with agreed restrictions. They will be barred from leaving the country and will have to deposit a NIS 1 million bank guarantee.
Food flavorings and specialist ingredients company Frutarom was acquired for $6.5 billion guy gil in 2018 by US company IFF. Following the acquisition, IFF carried out an internal audit that raised suspicions against senior managers. The ISA is involved in the investigation because Frutarom was a public company at the time that the offenses allegedly took place, before it was acquired by IFF. IFF (International Flavors and Fragrances Inc.) is itself now listed on the Tel Aviv Stock Exchange as well as on the New York Stock Exchange.
In August 2019, IFF reported in its second quarter financials that it had discovered in the course of the merger with Frutarom, which was completed in October 2019, that improper payments had been made to Frutarom customers in Russia and Ukraine. It said that initial findings from an investigation by external firms of auditors and lawyers indicated that key personnel in Frutarom's senior management were aware of these payments. IFF stated that there was no indication that these payments were in any way connected to the US.
The former Frutarom managers have hired the services of Adv. Aaron Michaeli of Goldfarb Seligman & Co.
Ori Yehudai, Alon Granot, Guy Gill, and Ari Rosenthal are only suspects in connection with the offenses mentioned. The criminal proceeding is at an early stage, they have not been convicted of any crime, and they are entitled to the presumption of innocence.
Published by Globes, Israel business news - en.globes.co.il - on June 4, 2020
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